The introduction of blockchain technology ushered in a new era of information exchange and financial transactions. One of the primary reasons for blockchain’s growing popularity is its use in governance applications. However, current blockchain technology is analogous to the internet’s early stages. The existing blockchain ecosystem requires improvement due to the various underlying frameworks and structures and the higher cost of application development, deployment, and maintenance. The blockchain-based service network has emerged as the most effective solution for establishing a global blockchain infrastructure.

1. Origins of Blockchain-based Service Network

5 minutes to understand blockchain-based service network

The Blockchain-based Service Network is China’s national initiative for integrating blockchain projects across large businesses, government, and emerging markets.

The blockchain-based service network was designed to serve as the backbone for interconnectivity infrastructure across mainland China, private businesses, city governments, and individuals in China and abroad. Essentially, the Blockchain-based service network founders want to create a new “Digital Silk Road” connecting China and the rest of the world.

Any new technology, such as blockchain, evolves from diversification to unification, from complexity to simplicity, and from high-cost to low-cost. As a result, global universal blockchain infrastructure is required to address the various flaws in existing blockchain technology.

2. Defining Blockchain-based Service Network

5 minutes to understand blockchain-based service network

As a result, the blockchain-based service network has emerged as a potential ‘Internet of Blockchains.’ The blockchain-based service network is a public network that can run across various cloud platforms, frameworks, and portals to enable easier and more cost-effective development, deployment, and management of permissionless and other blockchain applications.

The blockchain-based service network includes a consensus order cluster service and public city nodes. Each city could create one or more public city nodes linked via the internet to form a national physical city node blockchain service network. Publishers of blockchain applications can now deploy their applications across multiple city nodes on the blockchain-based service network.

Participants could then enter through the city node gateway without paying much money. Each city node’s deployed applications would share server resources. City nodes could guarantee the automatic and intelligent allocation of specific peer nodes with high processing functions in the case of high-frequency applications. The Blockchain Service Network can allow multiple applications to share a single peer node in the case of low-frequency applications.

3. The Value Proposition of Blockchain-based Service Network

The resource-sharing mechanism helps to reduce resource costs by nearly 20% to 33% compared to traditional blockchain cloud services. Traditional blockchain applications necessitate the establishment and upkeep of individual consensus nodes in addition to peer nodes.

5 minutes to understand blockchain-based service network

On the other hand, the blockchain-based service network requires only one uniform consensus node cluster service. China UnionPay is responsible for the uniform consensus node cluster service’s development, creation, operation, and maintenance. Furthermore, the consensus node cluster service services all blockchain applications on city nodes.

Blockchain-based service networks could also be viewed as an information infrastructure. The basic concept underlying blockchain-based service networks is sharing resources provided by city-developed public facilities. As a result, resource sharing would reduce social costs. Participants and publishers of blockchain applications do not need to purchase additional physical servers or cloud services to build their blockchain operating environment with a blockchain-based service network.

4. Advantages of Blockchain Service Network

Any blockchain-based service network guide’s most crucial aspect would be to reflect on its benefits. The advantages of Blockchain Service Networks can adequately reflect the opportunities they can bring to the global blockchain ecosystem. Here are some of the most significant benefits of the blockchain service network.

  • Cost Effectiveness
  • Reduced Threshold for Blockchain Application Development
  • Easier Opportunities for Participation
  • Flexible and Secure Access Modes


Finally, the blockchain-based service network is a promising advancement over current blockchain technology. Blockchain had to evolve into a more specific, accessible, and cost-effective variant at some point. Blockchain-based service network has developed solutions to some of the most prominent issues with traditional blockchain cloud services. Contact SmartOSC if you need help with blockchain development services.

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